Brazilian Pension System Research Articles

Assessing pension system outcomes in Brazil

The pension system serves as an important instrument to provide income for individuals who are incapacitated for work or achieve old age. Recently, Pension Systems worldwide have faced financial and actuarial difficulties, casting doubts about their sustainability. Arguably, the main reasons for the systemic unbalance are the ageing population and the structure of benefits. The present article investigates the impacts of these two variables by means of simulation exercises. Specifically, this paper aims to analyze how a rise in formality and an increase in labor productivity affect the results for the Brazilian Pension System (deficit or surplus), the participation of the benefits in total GDP and economic growth, based on a stock-flow consistent model (SFC). The results reveal that increasing formalization (i.e, rising the number of taxpayers) reduces the pension system deficit and boost economic growth. But the system deficit persists somewhat. Allowing for productivity growth improves the results.

The impact of alternative assets on the performance of Brazilian private pension funds

ABSTRACT This article assesses the impact of alternative assets on the performance of Brazilian private pension funds. Few studies touch on this topic in Brazil and most only investigate the addition of alternative assets and their impact on the performance. The market of open private pension funds in Brazil has been growing rapidly in recent years and gaining much relevance, especially after the announcement of the reformulation of the Brazilian pension system. In 2018, the Free Benefit Generating Plan (PGBL) and the Free Benefit Generating Life (VGBL) represented more than 94% of total assets in their sector. The Brazilian specially constituted investment funds (FIEs) of PGBL and VGBL private pension plans are characterized by their dependence on fixed income assets. Brazil currently faces an unprecedent low interest rate scenario - which, following a worldwide panorama, seems to be set for a long time - and pension fund managers must search for alternative investments that aggregate both risk premia and diversification. The results of this study may support managers in this little-discussed matter. We compare the performance of FIEs without additional alternative assets versus the portfolio with alternative assets, adding a hedge fund index, an equity mutual funds index, a commodity index, an electric power index, a public utilities index, a gold index, and a real estate index. Several performance measures were used, considering Brazilian regulations and a rebalancing strategy. Our results showed that almost all alternative assets used in this study improved the performance of the Brazilian FIEs of PGBL and VGBL private pension plans, especially the public utilities index and the hedge fund index. Some even improved the portfolio tail risk.

Pensions and Commodification under the PT Governments (2003–2015)

An analysis of the development of the Brazilian pension system’s issues under the Partido dos Trabalhadores (Workers’ Party—PT) governments focused on four main themes: austerity policy, payroll tax exemptions for employers, expansion of supplementary pensions, and union strategies associated with pension funds. The way the PT governments acted in these areas, despite expressing a different arrangement of interests from those of previous administrations that were self-declared neoliberal, did not change the general course of the commodification of social policy. Uma análise da evolução da questão previdenciária durante os governos do Partido dos Trabalhadores destaca quatro temas principais: o ajuste fiscal permanente, as desonerações da folha de pagamento para empregadores, a expansão da previdência complementar e a estratégia sindical ligada aos fundos de pensão. A atuação governamental nessas questões não alterou o sentido geral do processo de mercantilização, apesar de expressar uma acomodação de interesses distinta dos governos anteriores, declaradamente neoliberais.

PENSION DEFICIT IN BRAZILIAN SOCIAL SECURITY SYSTEM: LEGAL REMARKS AND STRATEGIES TOWARDS FINANCIAL SUSTAINABILITY

The present article consists in the brief analysis of the evolution of the Brazilian General Regime Social Security, depicting its frailty against subsequent legal reforms through which it has passed in recent years. It also deals with the impact of socioeconomic changes on the current and future financial sustainability of the Brazilian pension system. In fact, the evolution of the statistics concerning such social indicators can be quite decisive for the future sustainability of the Brazilian social security system. For this, we used the phenomenological method - hermeneutics, by privileging theoretical studies and analysis of documents and texts. Such research is very important in order to provide a glimpse of the general social security regimen in Brazil and its future prospects. The main results show that there is a budgetary concern due to the growth in life expectancy and declining birth rate. Even with the absence of the current financial deficit proclaimed by the media and the federal government, there will be the need for reform to fit the budget of Brazil’s future Social Security System. According to our analysis, the improvement of Brazilian Social Security requires legal autonomy of the Social Security Revenue (thus preventing the withdrawal of it funds to defray social security benefits belonging to another public sectors), the increase of minimum wage in the country, and public policies to stimulate the entry of informal workers in the General Social Security Regimen. Furthermore, this article suggests that, as a matter of immediate public policy, the Brazilian government should focus more energetically in improvement of educational systems, which presents itself as a strong indicator for the improvement of social welfare budget.

PENSION DEFICIT IN BRAZILIAN SOCIAL SECURITY SYSTEM: LEGAL REMARKS AND STRATEGIES TOWARDS FINANCIAL SUSTAINABILITY

The present article consists in the brief analysis of the evolution of the Brazilian General Regime Social Security, depicting its frailty against subsequent legal reforms through which it has passed in recent years. It also deals with the impact of socioeconomic changes on the current and future financial sustainability of the Brazilian pension system. In fact, the evolution of the statistics concerning such social indicators can be quite decisive for the future sustainability of the Brazilian social security system. For this, we used the phenomenological method - hermeneutics, by privileging theoretical studies and analysis of documents and texts. Such research is very important in order to provide a glimpse of the general social security regimen in Brazil and its future prospects. The main results show that there is a budgetary concern due to the growth in life expectancy and declining birth rate. Even with the absence of the current financial deficit proclaimed by the media and the federal government, there will be the need for reform to fit the budget of Brazil’s future Social Security System. According to our analysis, the improvement of Brazilian Social Security requires legal autonomy of the Social Security Revenue (thus preventing the withdrawal of it funds to defray social security benefits belonging to another public sectors), the increase of minimum wage in the country, and public policies to stimulate the entry of informal workers in the General Social Security Regimen. Furthermore, this article suggests that, as a matter of immediate public policy, the Brazilian government should focus more energetically in improvement of educational systems, which presents itself as a strong indicator for the improvement of social welfare budget.

PENSION DEFICIT IN BRAZILIAN SOCIAL SECURITY SYSTEM: LEGAL REMARKS AND STRATEGIES TOWARDS FINANCIAL SUSTAINABILITY

The present article consists in the brief analysis of the evolution of the Brazilian General Regime Social Security, depicting its frailty against subsequent legal reforms through which it has passed in recent years. It also deals with the impact of socioeconomic changes on the current and future financial sustainability of the Brazilian pension system. In fact, the evolution of the statistics concerning such social indicators can be quite decisive for the future sustainability of the Brazilian social security system. For this, we used the phenomenological method - hermeneutics, by privileging theoretical studies and analysis of documents and texts. Such research is very important in order to provide a glimpse of the general social security regimen in Brazil and its future prospects. The main results show that there is a budgetary concern due to the growth in life expectancy and declining birth rate. Even with the absence of the current financial deficit proclaimed by the media and the federal government, there will be the need for reform to fit the budget of Brazil’s future Social Security System. According to our analysis, the improvement of Brazilian Social Security requires legal autonomy of the Social Security Revenue (thus preventing the withdrawal of it funds to defray social security benefits belonging to another public sectors), the increase of minimum wage in the country, and public policies to stimulate the entry of informal workers in the General Social Security Regimen. Furthermore, this article suggests that, as a matter of immediate public policy, the Brazilian government should focus more energetically in improvement of educational systems, which presents itself as a strong indicator for the improvement of social welfare budget.

ANÁLISE DA PRODUÇÃO CIENTÍFICA EM ADMINISTRAÇÃO SOBRE A PREVIDÊNCIA BRASILEIRA: META-AVALIAÇÃO DA PRODUÇÃO NOS EVENTOS DA ANPAD

O trabalho objetiva levantar a produção técnico-científica sobre a Previdência Brasileira nos eventos da Associação Nacional de Pós Graduação e Pesquisa em Administração (ANPAD) no período de 1997 a 2011, buscando identificar se o sistema previdenciário tem sido discutido no âmbito da administração. O delineamento metodológico utilizado foi a meta análise (LUIZ, 2002). Por meio da busca por palavras chaves como previdência, social e fundos de pensão foram encontrados 33 artigos que abordavam o tema Previdência, cujos conteúdos foram categorizados segundo os seguintes critérios: distribuição anual dos artigos e dos eventos, autores, unidades federativas dos autores e do evento, abordagem metodológica, tipos de regimes, pesquisadores mais citados, publicação em periódicos e déficit da Previdência. Verificou-se que há mais publicações nos eventos do EnANPAD e não há predominância de nenhuma abordagem metodológica, além de um enfoque maior dos estudos em relação aos regimes complementares de previdência. Os resultados evidenciam a carência de estudos sobre Previdência Social devendo, pois, abordar mais profundamente questões relevantes para o contexto da administração pública. O artigo também evidencia as principais estratégias utilizadas pelos pesquisadores, norteando os demais estudiosos para preencher as lacunas teórico-metodológicas na área, a fim de aumentar as pesquisas que subsidiem o governo na tomada de decisão em relação às políticas previdenciárias.

PENSION DEFICIT IN BRAZILIAN SOCIAL SECURITY SYSTEM: LEGAL REMARKS AND STRATEGIES TOWARDS FINANCIAL SUSTAINABILITY

The present article consists in the brief analysis of the evolution of the Brazilian General Regime Social Security, depicting its frailty against subsequent legal reforms through which it has passed in recent years. It also deals with the impact of socioeconomic changes on the current and future financial sustainability of the Brazilian pension system. In fact, the evolution of the statistics concerning such social indicators can be quite decisive for the future sustainability of the Brazilian social security system. For this, we used the phenomenological method - hermeneutics, by privileging theoretical studies and analysis of documents and texts. Such research is very important in order to provide a glimpse of the general social security regimen in Brazil and its future prospects. The main results show that there is a budgetary concern due to the growth in life expectancy and declining birth rate. Even with the absence of the current financial deficit proclaimed by the media and the federal government, there will be the need for reform to fit the budget of Brazil’s future Social Security System. According to our analysis, the improvement of Brazilian Social Security requires legal autonomy of the Social Security Revenue (thus preventing the withdrawal of it funds to defray social security benefits belonging to another public sectors), the increase of minimum wage in the country, and public policies to stimulate the entry of informal workers in the General Social Security Regimen. Furthermore, this article suggests that, as a matter of immediate public policy, the Brazilian government should focus more energetically in improvement of educational systems, which presents itself as a strong indicator for the improvement of social welfare budget.